Navitas Shares Fall After Wider-Than-Expected Loss Despite Revenue Beat And Upbeat AI Outlook

Tiger Newspress07-28 07:40

Navitas Semiconductor shares fell 3% in after-hours trading after the company reported a wider-than-expected non-GAAP loss of $0.95 per share, overshadowing better-than-expected revenue. Second-quarter revenue rose 22% sequentially to $10.5 million, while non-GAAP gross margin improved to 39.5%. The company guided third-quarter revenue to $13 million-$14 million, implying about 28% sequential growth at the midpoint.

The company said its transformation toward AI infrastructure and high-power semiconductor markets continued to gain traction. High-power revenue grew more than 50% year over year, while AI infrastructure is expected to contribute more than one-third of quarterly sales by the end of 2026 as hyperscaler and data center programs ramp up.

Navitas reiterated its long-term growth strategy centered on AI data centers, highlighting opportunities from the industry's transition to 800V power architectures and continued investment in GaN and SiC technologies. The company ended the quarter with $557 million in cash and no debt, but investors remained cautious as ongoing losses, execution risks and litigation continue to cloud the path to profitability.

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